California electric-car startup Evelozcity is in talks with European contract manufacturer Magna Steyr for U.S. production, sources said.
A letter of intent has already been signed between the two companies, the sources told Automobilwoche, a sister publication of Automotive News Europe.
Evelozcity is developing an electric car aimed at the mass market, a delivery van and an autonomous ride-hailing vehicle. The company aims to bring its first vehicle to market in the U.S. by 2021 and eventually will expand sales to Europe and China.